Disclaimer: Information provided below may vary by community. We encourage you to speak directly with each Senior Living community to confirm specific details and ensure the community is the right fit for your individual needs and preferences. For example, Kisco communities do not accept Medicaid assistance.
One of the first questions families ask when researching senior living is: “How will we pay for it?” It’s a valid concern. Senior living can be a significant expense. But with careful planning and a clear understanding of your options, you can create a financial path that works for your family and ensures you or your loved one receives the personal care you need.
In this guide, we’ll walk you through the most common steps families take when researching and deciding how to pay for senior living. Your options include government programs, insurance policies, private funds, and home equity. Along the way, we’ll share insights and advice to help you feel more confident and informed about your choices.
Medicare is federal health insurance for adults 65 and older. It’s designed to cover medical care, not the costs of living in a senior community. Let’s break it down by program.
Part A is hospital insurance for seniors over 65 years old. In most cases, you won’t pay a monthly premium for Part A because you paid into it while working.
If you don’t qualify for “premium-free” Part A, you’ll pay for either the full premium or a prorated amount (between $285 and $518 per month in 2025). In 2025, the deductible for one in-hospital stay is about $1,600. You’ll pay this deductible every time you or your loved one enters the hospital.
Part A also covers short-term rehabilitation stays. If you or your loved one needs temporary support in a rehabilitation or skilled nursing community after a hospital stay, Medicare will pay for up to 100 days. After 60 days, you’ll be required to pay a daily coinsurance fee.
Part A coverage of hospital and inpatient rehabilitation services includes:
Part A will also cover some hospice and home health services, as well as doctor visits and medical equipment.
A doctor must confirm that you or your loved one has a medical condition that needs intensive rehabilitation, medical supervision, and coordinated personal care.
To find a skilled nursing or rehabilitation community that accepts Medicare for short-term stays, please visit Medicare’s Care Compare tool.
In general, you cannot use Part B to pay for senior living. Medicare Part B is outpatient medical insurance.
In 2025, most beneficiaries will pay about $185 per month for Part B. The deductible is $257.
After you pay the deductible, Part B pays 80% of these services:
In addition, Medicare Part B will pay 100% of some preventative health and screening services such as:
Part B also includes some costs for treating people with dementia. It covers cognitive assessments, personal care planning services, and certain medications. However, it won’t cover memory care living expenses.
RELATED READING: What is Memory Care?
You might hear providers talk about “Original Medicare.” This term includes both Parts A and B, the two health plans offered by the federal government.
These are private health plans that cover the same services as Parts A and B, as well as provide extra services.
Like other private insurance plans, you can choose from several types of plans, including:
The average monthly premium for Medicare Advantage plans in 2025 is $17.00.The out-of-pocket maximum is $9,350 (but some plans set lower limits). Depending on the plan, you may also be responsible for a deductible and/or a portion of the cost of personal care. Please note that you or your loved one must also be enrolled in Parts A and B, and you’ll be responsible for those costs as well.
Some Part C plans cover certain non-medical (also called supplemental) benefits and services. These could include:
The exact details vary widely by provider and plan. When shopping for a Medicare Advantage plan, review the specifics of each plan thoroughly to ensure your specific needs are covered.
Part D covers medications. Some Medicare Advantage plans will bundle Part D coverage into them, or you can purchase a standalone Part D plan.
The monthly cost of a standalone Part D plan in 2025 is $46.50. The standard deductible for Part D plans in 2025 is $590, but you could choose a lower deductible and pay a higher premium. The maximum out-of-pocket cost for 2025 is $2,000.
Most plans include five tiers to choose from:
You can choose the plan that covers your or a loved one’s specific prescriptions (or a similar alternative) and price range.
Part D doesn’t cover:
Medigap is a supplemental insurance policy you can use with original Medicare (Parts A and B) to cover some out-of-pocket expenses for covered services. You cannot use it with Medicare Advantage plans. The monthly premium cost will depend on the plan you choose. Most private insurance companies offer Medigap plans. Coverage is usually the same across plans. Medigap can help you cover deductibles, copayments, coinsurance, and more. Medigap isn’t intended to cover senior living costs.
In general, Medicare won’t help you pay for most senior living expenses. However, it can be very beneficial in covering costly medical expenses for you or your loved one, no matter where you live.
Medicaid is a joint federal and state health insurance program for low-income individuals. Each state runs a distinct Medicaid program using Federal guidelines. There are strict income rules and asset limits to be eligible for Medicaid. You must also have a functional need for medical services to qualify for Medicaid. However, the need criteria varies by state. It’s also possible to be eligible for both Medicaid and Medicare.
For most seniors, there are three options for Medicaid. They are:
In every state, including Washington, D.C., Medicaid covers skilled nursing (room, board, and personal care services) if you or your loved one meet specific medical and financial requirements. You’ll be required to contribute most of your income to pay for personal care as well. This is called your monthly patient liability or copayment.
For single seniors aged 65 and older, the monthly income limit is generally $2,901, and the asset limit is $2,000. Assets include cash, savings and checking accounts, property other than your primary residence, CDs, mutual funds, stocks, and bonds.
There are exceptions to these rules. For example, New York allows up to $32,396 in assets. Holocaust survivor reparations and Veterans Administration Aid & Attendance benefits usually don’t count as income.
RELATED READING: Financial Resources for Veteran Retirees in Senior Living
For married couples, it’s a little more complicated. Rules vary depending on whether one or both spouses apply. If only one does, the other may keep up to $157,920 in assets and a portion of the applicant’s income (up to $3,948/month).
To cover long-term personal care through Medicaid, you or your loved one must need a certain level of services. A functional assessment is done to determine eligibility. It looks at the ability to perform Activities of Daily Living (ADLs) like bathing or dressing and Instrumental Activities of Daily Living (IADLs) like cooking, cleaning, or managing medication. It also considers medical needs, such as needing assistance with injections, catheters, and intravenous medications. Cognitive and mobility issues are also considered. However, a diagnosis of Alzheimer’s or Parkinson’s doesn’t automatically qualify you. Instead, what matters is how those conditions impact your ability to care for yourself.
About 80-90% of skilled nursing communities accept Medicaid as payment. However, they often have a limited number of beds designated for Medicaid recipients. To find a community that accepts Medicaid, use resources like Medicare’s Care Compare tool or call your state’s Medicaid agency.
Many states (except Alabama, Kentucky, and Louisiana) offer Medicaid waivers to help seniors avoid or delay a move to a long-term care community. Instead, Medicaid will pay for the care a senior needs to stay home or live in an assisted living community. No state, however, will pay for assisted living room and board. These waivers cover personal care, medication management, therapy, and transportation. Some Medicaid assisted living waivers include memory care.
Income, asset, and functional qualification rules vary by state, but in general, they’re the same as the rules for Nursing Home Medicaid. Income must be below $2,901 per month, and assets must be under $2,000 (with some exceptions, like your home). You or your loved one must also need a Nursing Home Level of Care or be at risk of needing it without support. Some programs require your doctor’s statement confirming that regular personal care is necessary.
If you or your loved one already lives in a community and runs out of funds, some communities allow a transition to Medicaid waiver coverage. If your family will need to use Medicaid, ask the communities you’re interested in if they accept Medicaid, what the rules are for Medicaid acceptance, and what percentage of residents are on the program.
About half of assisted living communities are Medicaid-certified. Yet not all Medicaid-certified assisted living communities accept Medicaid residents and those that do may have limited spots available.
To find an assisted living community in your town that accepts Medicaid and has an available bed, contact your local Area Agency on Aging (AAA) office.
ABD Medicaid is also known as Regular or State Plan Medicaid. This program offers limited in-home care and has stricter financial rules than other Medicaid options. In general, you or your loved one must be 65 years or older, blind, or have a disability.
The financial eligibility requirements for ABD Medicaid are lower than other forms of Medicaid. In about half of the states, income limits are around $967/month for a single person and $1,450/month for a couple. In other states, the limits are closer to $1,304/month for a single and $1,762/month for a couple, based on Federal Poverty Level guidelines.
For an individual, asset limits for ABD Medicaid are generally the same as for Nursing Home Medicaid. However, the rules are different for married couples. Couples, regardless of whether one or both are applicants, are permitted up to $3,000.
Of course, each state has its own ABD Medicaid eligibility criteria. Contact your local Medicaid office for more details.
Because Medicaid rules and guidelines are complex, many families work with Medicaid planners to find and qualify for the correct coverage. If you’re considering this route, it’s wise to talk with a qualified advisor early in the senior living planning process.
Medicare covers hospital stays, rehabilitation, and medical care but not housing or long-term care. Medicaid can help cover more medical care, including skilled care costs and some assisted living services, but you or your loved one must meet strict income, asset, and care-level criteria.
Understanding your options early makes planning easier. If you’re unsure about eligibility or how to apply, talk with a Medicare/Medicaid planner or your financial advisor. The right support can make all the difference in securing quality care and peace of mind.
Kisco Senior Living Communities are not Medicaid certified and do not accept Medicaid as a form of payment. However, we proudly welcome residents who use private pay, long-term care insurance, life insurance benefits, veterans benefits, or other financial resources to support their senior living journey.
Need help understanding your options? Please read this article. Our team is here to guide you, give us a call to talk about your options.
Disclaimer: Information provided above may vary by community. We encourage you to speak directly with each Senior Living community to confirm specific details and ensure the community is the right fit for your individual needs and preferences.
